May 2019

I’m raising $5.9 million on an apartment project that costs $23.6 million. I still have a ways to go to get all the equity capital raised. Among the many projects I’ve developed, this is one of the best. The project appraised at $25 million when completed. The appraiser used a 6 Cap Rate to determine the value, which is higher than most apartment projects are achieving. While raising the equity capital, I was referred to a potential investor who had sold a restaurant building and was sitting on $1 million in cash. She was looking for a good investment. I…

There are Six Investor Personality Types: 1) Cautious; 2) Emotional; 3) Technical; 4) Busy; 5) Casual; and 6) Informed Knowing why you make certain investment decisions can help you become a more educated investor. There are several studies that determine investor personality type. The CFA Institute categorizes investor personality types into four main groups: Preservers, Accumulators, Followers and Independents. Barnwell Two-Way Model groups investors into “passive” and “active.” One of the best studies uses Psychonomic Investor Profiling which holds that a person’s propensity to risk is unlikely to change regardless of circumstances. Psychonomic refers to the laws of science as…